Posted by 3020jd2955 on October 26, 2012 at 07:30:57 from (68.152.9.254):
In Reply to: Re: 21,900 an acre! posted by sdc eastern ia on October 26, 2012 at 06:44:40:
I expect a lot of people aren't putting true "cash" they have laying around into the deal as much as they are putting equity from land they already own into the deal. In this case, if the entire purchase was $1750k, to get that 50% loan to value the purchaser could have come up with $1750k of RE they already owned as extra collateral to essentially 100% finance the new purchase. Works as long as markets don't drop, and you don't mind leveraging what you already own...
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